Payroll Encumbrances

How Encumbrances are Calculated/Liquidated

Payroll Encumbrances are records of anticipated expenses that a department should expect throughout the current period. This will generally be the earliest of the following:

• End of the current Fiscal Year (or the Grant end date for multi-year encumbrances)
• Job end date in NBAJOBS
• Effective date of a future-dated job distribution record for that employee and job.

Encumbrance balances will liquidate each pay period in the amount of the payroll expenses posted that pay period until the balance reaches zero.

Timing of When Encumbrances Are Updated in Banner

Encumbrances are only updated (recast) in Banner during a main payroll calculation (monthly or biweekly). Because of this, changes to encumbrances may take a few weeks to process in Banner.

How to Update Encumbrances

Encumbrances reflect the anticipated payroll expenses for a specific job so changes to encumbrances will process based on changing the job distribution record in HR Front End (HRFE)

Labor Redistributions in Banner using form PZAREDS will not impact encumbrance balances since the expenses being moved have already been liquidated when the payroll initially posted.

How to Close $0 Encumbrances

Sometimes an encumbrance is fully liquidated with a $0 balance but has not been closed in the system. If grant related, please contact Grants. For all other funds email uafrpayrollacctg@uillinois.edu.

Reviewing Payroll Encumbrances by Person and by Month

Payroll Encumbrance reports are located in My UI Financials.

Year End Encumbrance Processing

For encumbrances that are encumbered on an annual basis, any encumbrance balance at year-end will be fully liquidated. Multi-year encumbrance (MYE) balances roll into the next fiscal year.

Annual encumbrances will be recast when the first payroll of the next fiscal year is calculated.